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operations

After completing my project management course at DePaul, the dots began to connect. The course has created a well round view of what goes into managing a project. The various tools, skills, and resources necessary to being a successful project manager. From estimating project cost and timelines, managing risk, to scheduling resources and cost, this course has taken me from an unclear idea of what project management is to a more refine idea of what a project manager does. The experiences I have encountered while working on our group project and the individual interview helped immensely define and illustrate the responsibilities of a project manager.

Furthermore, after reading the article “Keeping Tabs on Projects,” I have drawn similarities to my experience in the group project and to Kevin Wood’s experiences (the person I interviewed) as a project manager. Projects have a lot of moving parts as I have discovered in our teams experience. I would imagine at a company, one might even have multiple projects going on simultaneously. To successfully run a project, being able to keep tabs on every aspect of the project is vital. In my experience with my group we did this extensively through emails, meetings, formal reports for class, and informal conversations over the phone/texting. In the interview with Kevin, this was one of the topics we discussed in-depth. He mentioned some days he only spends reporting on various aspects of his project, whether its to his supervisor or his client.

“Keeping Tabs on Projects” discusses implementing a systematic way to keep tabs on everything without having to dig through emails and notepads. My group did this by creating a workflow chart. Its important to keep upper management informed along the way. By doing so, it can make the project easier with them as far as support and proper resource implementation.

In the article it discusses that in the beginning of the project its important to identify the roles every player will be responsible for. By identifying those individuals and what roles they each will play, the project manager will understand what information they will need for further execution. By keeping tabs on the individual deliverables, it allows the project manager and the group to help identify problems and potential roadblocks. In my groups experience, I was responsible for finding potential locations for our event. By getting the appropriate information to my group early on, we were able to make a sound decision on where our event would best benefit our cause.

For a long time, music was thought to have been a hindrance to effective time utilization and completion of tasks. Listening to tunes at work was considered something no one did for fear of either getting fired or simply being unfocused.

However, the tables have turned. Music has been shown to increase focus, awareness, and even boost productivity in typical workplaces such as the office. Granted, tuning out to your favorite Taylor Swift song is not recommended for high customer interaction jobs such as McDonalds or Chipotle, but in the more traditional office settings, with often endless rows of busy-bees confined to cubicles, music can become a lifesaver and a productivity-booster.

According to FastCompany.com, a blog geared around operational management strategies, studies have shown that employees engaging in repetitive tasks can benefit greatly from listening to even the simplest songs at work. “The effects music can have in relation to repetitive tasks were further explored in this study, which showcased how assembly line workers displayed signs of increased happiness and efficiency while listening to music” (FastCompany).

Additionally, even articles by the New York Times vouch for music’s effectiveness in the workplace, “In one study involving information technology specialists, she found that those who listened to music completed their tasks more quickly and came up with better ideas than those who didn’t, because the music improved their mood.” (NYTimes)

In an article by Time Magazine, music is cited as being a real help in recalling facts and boosting memory recognition: “Adults aged 18 to 30 were asked to recall a series of sounds presented in a particular order. Participants’ performance suffered when music was played while they carried out the task as compared to when they completed the task in a quiet environment. Nick Perham, the British researcher who conducted the study, notes that playing music you like can lift your mood and increase your arousal” (Time)

Although there have been many studies showing that music does help with employee satisfaction, happiness, and productivity in certain workplaces, how do you feel about allowing/using music in the workplace? Do you believe that there are instances where it should not be allowed? In what setting would you feel most comfortable allowing employees to listen to music? If not allowing employees the option to listen to their individual headphones, how else would you attempt to increase productivity at a workplace, if not by music?

The North face is a popular American outdoor product company that specializes mostly in winter gear such as coats, jackets, fleece, hats, gloves, etc. It is a well-known and respected brand, yet recently it has been facing some ethical challenges in their operations. There has been a lot of controversy over down insulation. Down insulation is used due to the benefits it has of providing warmth during extreme cold weather. Yet the process of collecting these feathers is not so nice and simple. Basically many of the ducks and geese are often plucked alive, and “many of the fine feathers in comforters and puffy coats come from birds that were force-fed to make foie gras” (Stock). The North Face is one of the brands to recognize this problem in their supply chain and their goal is to create one that all customers can have a positive thought of. This relates back to our class since we discussed some of the new challenges that operations managers face, such as the increasing global focus, ethical, social responsibility and sustainability challenges. Basically companies are expected to develop products that are of high quality and sustainability. This could be seen in the actions North face is taking by changing their operations into something much more ethical, sustainable that affects everyone around the world. In the article it states, “We’re trying to change the down industry on a global level,” says Adam Mott, director of sustainability at North Face, a unit of apparel conglomerate VF Corp. “And we’re trying to create a standard that’s inclusive enough that anyone can use it”(Stock). Northface is changing its certification standard to become more environmentally focused, the birds that the feathers come from cannot be raised in harsh conditions. They need appropriate food, water and living conditions. Northface is going to have this supply chain documented clearly so that only qualified feathers will be turned into down insulation in their products. By next year a lot of products will be labeled with “RDS” which stands for “renewable down standard”. Recently a lot of other companies such as H&M, Eddie Bauer and Marmot have caught on with this major change, while Patagonia has been having clean down program for over six years. Yet the biggest challenge companies such as the Northface have to face is to convince duck and goose farmers in China and Eastern Europe, who provide most of the feathers, to change their operations and become environmentally focused, since most of the money they make, comes from meat of the birds and not the feathers. Even though there are still many obstacles along the way, Northface is following a new more sustainable path through it’s RDS program that they hope will raise consumer interest and allow them to compete with their biggest rival Patagonia.

Do you think there are other challenges that operations managers of companies such as Northface are going to face?

Do you think by refocusing its ethical approach to down insulation and creating new standards will benefit Northface as a Company? Will the sales and consume interest increase, even though Northface will be competing with sustainable brands like Patagonia who have their own clean down program (PDF) as early as 2007?

Chipotle can contribute their success and expansion to several factors such as a clear brand message that commits to serving fresh, healthy and natural food at affordable prices; however, depending on external funds by franchising their restaurants isn’t one of them.

Several of the most successful restaurant chains can credit franchising to their rapid growth including Subway, McDonald’s, Dunkin Donuts, Starbucks, KFC, Dairy Queen and Buffalo Wild Wings.

With just around 1,600 locations, which pale in comparison to many popular franchises (Subway has 43,000 locations), why hasn’t Chipotle considered franchising?

The answer is simple. They don’t need nor do they want to. So how have they managed to succeed among the sea of franchises?

One of Chipotle’s greatest contributing factors lie within their management approach called the restaurateur program.

Starting in 2005, shortly before their divesture from the McDonald’s Corporation, the company implemented a system that heavily relies on internal promotion to motivate their employees and provide opportunity for career growth beyond most fast food corporations. The same year the restaurateur program was initiated, it was quoted that 20% of managers gained their position through the program. As of 2013, 86% of salaried managers and 96% of hourly managers were internally promoted.

A general manager can only rise to the rank of being a restaurateur based on their performance of how well they manage their restaurant and staff. After being selected, restaurateurs make well over $100,000 and are given a $10,000 one-time bonus, stock options, a company car and an additional $10,000 for each of their crew members that are promoted to general manager.

I think employee motivation is a crucial factor that’s often overlooked to successful operations management and have found it refreshing to learn that a company I frequent so often offers great employee incentives and benefits. In addition, not conforming to industry norms by trusting the skills of their employees to adjust recipes such as if a crate of jalapeños is hotter than usual, in my opinion, creates a superior product, service and experience. Do you think Chipotle chose the right track by not franchising their restaurants?

Whether you have the title of Project Manager or not, it is vital for you to adopt certain principles if you want to thrive in the work place. This article describes how the rapid increase in the use of online social media and tools has transformed the work place into a much more collaborative environment. This collaborative environment requires employees to act like a project manager by proxy. I was drawn to this article because although I am not a project manager per se, I recognize the importance of having the skill set that a good project manager has.

The first way to become a better project is to be “Mr. or Mrs. Fix It” when encountering a problem. Heading up the most pressing issues can inspire a team and increase their level in confidence in you as a leader. I have always believed that it is best to nip something in bud as soon as it arises, but I think it is also important to approach problems tactfully.

The article next talks about the importance of having a thorough understanding of what the project is. Personally, I have a hard time with the planning part of a project. As soon I think that I might understand what is being asked of me, I tend to jump right into it and fix my mistakes as I go that otherwise could have been avoided if I spent more time planning. Do you put a greater emphasis on the planning or action phase of a project?

The author next talks about how easy being compulsively organized has become through the use of collaboration software. I use google docs all the time for group projects and the like, and I could not agree more. Everyone being able to collaborate in one place with collaboration softwares has made staying organized and on-task easier than ever. Do you believe in the power of face-to-face meetings or is online collaboration something you would prefer? Why?

Not letting your team coast is the next way to improve your project management skills. The author argues that the project manager should not only focus on team members strongest areas, but areas with room for development. Having to learn and research as you go can inspire innovation and a new/better way to do something.

The importance of being assertive goes hand-in-hand with being Mr. or Mrs. Fix It. If there is an issue or you’re not satisfied with someones performance, addressing the matter right away is the best way to handle it. Give a clear explanation of what you want from them when you approach them.

I think many people confuse an assertive manager with one who is trying to micromanage. An effective manager will be assertive when approaching someone, but will help them correct the issue. This will usually give them ability to work autonomously for the remainder of the task at hand. I have worked for people who like to micromanage because they believe it limits room for error. I disagree and believe that mistakes are a good thing that provide a learning opportunity. Do you prefer to be micro or macro managed?

Perhaps the best way to improve your management skills is to “always have their back”. Do your best to encourage ingenuity and make it clear that mistakes are hardly ever a bad thing. To quote the great Bruce Lee, “the master has failed more times than the beginner has ever tried”. What are your thoughts on the importance of mistakes and how to approach them as a project manager?

“What do weight-loss plans and process-improvement programs such as Six Sigma and “lean manufacturing” have in common?” They article starts off with this quote, referring that diet plans and six sigma plans do indeed fail at one point or another. The companies that use Six Sigma normally start of with huge goals and aspirations of putting these plans into operation, but just like a failing diet these companies tend to go back to their old ways. Many companies around the world embrace this business management such as Six Sigma; however, a recent study shows “that nearly 60% of all corporate Six Sigma initiatives fail to yield the desired results.” This is where we begin to ask ourselves if it’s actually worth investing in a plan if 60% of the companies who do it aren’t coming up with the results that they wanted. The articles diagnosis this problem into three stages, “stretching, yielding, and failing.”

So let’s start off by talking about what they call the “stretching phase.” The process can be defined similarly to a metal spring analogy. “When a metal spring is pulled initially, the material stretches to accommodate the increase in pressure.” They compare these metal spring to people in a business process. Initially people at any process in the business will bend and stretch to make things happen. I also agree with this because when you are new to a job or trying a new process you are initially willing to do whatever it takes to try and make it work. Most teams in any business are generally excited and willing to learn the new process, such as Six Sigma. Normally at this stage in the process managers will implement a “to-do” list will let employees know what is exactly expected out of them. When the employees reached all of their goals on the “to-do” list they were rewarded and the project is normally ruled a success. I believe this is where we can see one downfall. Rewarding employees can be successful, but if you keep doing it over and over and don’t increase the expectations or continue to manage you teams, I believe failure is inevitable.

The second phase the article is called the “yielding phase.” The phase can be defined as, “If a metal spring continues to be pulled, there will come a point when the material yields as it struggles to support the increase in pressure. Though still intact, the spring becomes permanently deformed, stretched out.” They compare this to management at a company switching from one project to another. When management switches to another project more times than none the team that lost the management from the Six Sigma managers slowly begins to lose site of their goals and begin to slip back into their old ways. At this point in the phase teams begin to loose sight of the end goal and being to focus to much on their individuals efforts. The teams that lost the Six Sigma management slowly began to crack under the pressure.

The third and final phase in this article is the failing stage. Using the metal example this stage is defined as, “Over time, pulling will cause the material in one area of the metal spring to narrow, creating a neck that becomes smaller and smaller until it is unable to sustain any pressure at all. At this point breaks into pieces.” When the Six Sigma management team leaves, employees at company’s becomes discouraged and eventually begin performing poorly and than fail returning into their own ways.

After reading this article, I begin to wonder if the Six Sigma program is actually worth it? What do you think?

Should a company invest money into this program, if 60% of the companies end up returning to normal ways?

Many companies want to promote sustainability within their markets since it attracts more customers, however competition and living within specific limits are stopping them from achieving this goal. Sustainability, which includes sustainable design, building and operations, is the collection of strategies and policies employed by companies in order to reduce their overall impact on the future generations. By taking waste from one part of the production process and using that waste to generate new product is a great way to minimize the consumption of limited natural resources and maintain their availability for the future.

It is very important for management to set goals and develop a strategy when searching for improvement opportunities in order to implement a sustainability program within their company. I think it is much easier being sustainable than going green and many other companies are following in such footsteps.

For instance, Tesco, a British multinational grocery store and third-largest general merchandise retailer in the world measured by revenues and second-largest measured by profits, has recently planned out new business strategies and goals in three various areas, one of which is to reduce food waste globally and become a more sustainable company.

Research by Tesco shows that about one third of the world’s food is never eaten and instead it is thrown out or left to rot. Therefore, Tesco is planning to pursue this food waste issue in three crucial areas which are: its own operations, the supply chain and agriculture, as well as the customers. The company has the ability to track down waste and find where it happens as it leaves the farmer’s field and reaches the customers’ home, and everything that happens in between.

According to the article, Tesco claims that around 32 percent of food is wasted across its value chain, of which 16 percent comes from the supply chain and agriculture, the other 16 percent coming from customers and less than 1 percent is from the retailer.

Because of the large amount of food waste across all markets, the company is working to develop an advanced measurement for the amount of food ruined in its operations. This will permit Tesco to track progress through a period of time which can significantly minimize the waste as well as achieve its goal of sustainability. Since the food waste is much lower in the UK than in other markets, it plans to follow in their specific operational practices and more precise forecasting so that food does not rot or is thrown out with the high supply rate.

Being more transparent and sustainable for a company with a global marketplace is tough, however, Tesco hopes that by keeping a strong track record of its waste management will lead to a decrease in the food waste levels throughout its value chain, attract more customers, and keep increasing its profits.

Do you think the tracking record will achieve greater sustainability for Tesco or should they examine other ways to manage their inventory and to minimize the overall food waste?

Would you agree to be recorded while in surgery? Would you agree if you knew that the doctors would take better precautions and be on their best behaviors when they are recorded? The quality of care rises overwhelmingly when doctors know they are being recorded, so why wouldn’t they always be recorded? The article states that doctors follow the hand washing guidelines about 82% more when they are recorded, compared to 7% when the cameras are off. It only makes sense to enact surveillance for all surgeries because the doctors are more inclined to behave better. Just as a retail store or any office behaves better when they know the cameras are on, the doctors do the same. When I think about a hospital I tend to think about how they have higher quality because they are working with sick human beings and these peoples lives are in their hands, but maybe that’s not the case. If I was in surgery I would prefer to have the camera on in order to receive the best quality procedure I could. If my life were in someone else’s hands, I would want the best care in order to come out alive without complications from negligence. Yet there are also the chances that in the course of playing by the book, some miracles would be prevented because doctors are worried about the proper procedures to follow. The precautions that are being looked at are whose going to own the videos, can the surgeon refuse to be recorded, and whether or not surgeries that deal with private areas can be recorded. Doctors disagree to be recorded because of the possibilities of malpractice lawsuits that could be issued.

Besides the quality issue, the article also mentioned the doctors can use the videos as a review for techniques and ways of improvement. When I played sports, the use of video reviews were very helpful. Whether I was reviewing my own techniques or reviewing an upcoming team, I could always learn something new to improve my skills. The videos can also be used as a teaching method for new doctors and students. If the use of cameras equals better quality, I’m all for it. If it’s a matter of patient privacy, then the consent should be put onto the patient and they should be able to choose whether or not to press record.

The topic is interesting and both sides of the argument have valid points. It will be interesting to see what happens in the long run and why they chose it to be that way.

So, let me know what do you think about the quality of hospitals, and would you agree or not agree with the use of cameras?

We live in a society dependent on technology and in the world of business, technology has helped in developing various systems to improve day-to-day business activities and satisfy both the consumers and the producers.

Customers are always anticipating the endless wait in checkout lines. Sometimes if feels like the line has not moved for the past 10 minutes, but switching to a different line puts them at a risk that it might be even longer. Is the item really worth waiting in line for? Is it easier to bail and just buy it online or at a different store? Numerous retail stores are trying to find new ways to get the shoppers through with ease as online shopping is increasing and as long lines threaten sales and loss of loyal customers.

Kroger Co., a supermarket giant, has installed infrared cameras to aid in lengthy checkout lines in about 2,400 its stores. The cameras, which detect body heat and have been used in the past by the military for surveillance purposes, are paired with Kroger’s in-house software in order to decide the number of lanes that need to be open. Not only has this new technology allowed the stores to operate with lower labor expenses, but it also has reduced the customer’s average wait time spent in line.

Competition in the retail industry is high and for companies to enhance the shopping experience and speed up service for each of their customers is a top-notch priority. Since the checkout lines are the last thing the customer experiences, the longer the time is wasted waiting in line, the less satisfied the customer is leaving the store. The ultimate focus for Kroger and any other business is its consistent customers, and according to Kroger’s surveys, the customers believe the checkout speed has been much quicker since the installment of the cameras.

Kroger’s system, QueVision, which is now in about 95% of its stores, forecasts the length of time customers spend shopping based on the time and day as well as determines the number of lanes that need to be open. In addition, QueVision data shows the amount as well as type of items purchased by the times of day, and by adding more express lanes and boosting certain orders, Kroger has improved its operations as sales have increased by 13% in the past year.

Kroger’s goal is to please their customers so that they enjoy their entire experience so much that they will come back again and again. They are gradually improving the QueVision software system to predict shopping behavior and fix the checkout lanes procedure in order to get the shoppers out more quickly and make the checkout experience the best that it can be.

The most important way to create loyal customers is to understand their shopping trips and make them as personalized as possible so they will always come back. Making improvements is a continuous process. What other approaches could retailers take to better the overall shopping experience?

In March of this year, Walgreens and AmerisourceBergen announced a partnership to take over part of Walgreens prescription drug distribution. This partnership will give both companies a leverage in size and help them better compete in the already large industry. President Obama’s Affordable Care Act will extend health care coverage to a lot of people who previously did not have it. For the pharmaceutical industry, this means a lot, and companies will be fighting to keep prices low. “To win, companies must capture enough new volume to offset the effect of pricing pressure on profit margins” (Cahill).

The news of this merger is very relevant to Operations Management, because of the changes it will mean for Walgreens supply chain. Previously, Walgreens had used Cardinal Health Inc. for some of their distribution needs, but not nearly to the extent of the new AmerisourceBergen partnership. However, the contract Walgreens had with Cardinal is up in August, and they will be using this opportunity to change how they run their distribution. For Cardinal, their stock price has already been falling.

In a quote from Crain’s Chicago Business, author Joe Cahill sums up what this means for Walgreens supply chain: ”Walgreen’s agreement to buy $28 billion worth of drugs annually from AmerisourceBergen will pump more volume through the wholesaler’s distribution network, boosting asset utilization and profitability. At the same time, wholesale costs should fall as the bulked-up middleman leans on suppliers.”

One of the main reasons for the merger, besides the cost-cutting, is their new-found access to specialty drugs. The company that has been known for their bulk prescriptions, is now able to sell drugs for, “cancer, rheumatoid arthritis and multiple sclerosis, which have higher profit margins but are also more expensive to keep on hand” (Humer and Wohl). Previously, Walgreens was not able to supply all of these drugs because their delivery trucks came from Cardinal only once a week. Now Walgreeens will be receiving daily deliveries from AmerisourceBergen (Japsen).

This partnership does not only mean new things for Walgreens, but AmerisourceBergen as well. This contract will be worth $400 billion over the ten years that it is in effect. It is becoming increasingly more difficult for small companies to compete in this economy for this type of industry. This partnership really allows Amerisource Bergen to focus their efforts on, “generic and branded prescription drugs around the world” (Japsen). Being able to concentrate their efforts in specific areas, allows AmerisourceBergen for further cost-cutting

Thoughts for discussion:

Do you think rival CVS/Caremark will begin to change or rethink their distribution after this news?

What does this mean for other pharmaceutical companies? Are the industry giants, the only real players now?